The influential British investor advisory service Hermes plans to vote against the executive board of Deutsche Börse at the exchange operator’s May 17 shareholders meeting, Handelsblatt has learned.
Hans-Christoph Hirt, the head of Hermes EOS, told Handelsblatt that the vote of no confidence was due to an insider trading investigation against Deutsche Börse CEO Carsten Kengeter as well as deficiencies in how he handled the failed merger with the London Stock Exchange.
Shareholders have nothing against taking calculated risks in a merger, Mr. Hirt said, but they expect those in charge to not be politically naive and also to communicate well with the main interest groups.
Critics of Mr. Kengeter say he underestimated the political hurdles that the merger faced in the wake of Britain’s decision to leave the European Union. Mr. Kengeter has acknowledged that he failed to argue persuasively enough in favor of the merger.